December 8, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Collapse Is Inevitable

bitcoin forecast

The volatility of Bitcoin (BTC) cryptocurrency rate keeps falling, and the bulls fail to break the resistance zone of $ 19,400. Therefore, BTC/USD should fall in price to $ 18,000 by December 15.

Key Points

  • BTC price fluctuates in a range above the average by 100 hours moving average ($ 19,170).
  • The hourly chart demonstrates a downtrend line with resistance at $ 19,250.
  • The nearest support zone formed at $ 19,000.

On December 5, the value of Bitcoin dropped to $ 18,500 (on the Bitstamp exchange). Then the cryptocurrency began to be bought back, and on Monday the rate of the coin rose to $ 19,430. Nevertheless, the bulls could not keep the price of the asset at this level, and the coin fell again to $ 18,900. On Tuesday, there was a correction to $ 19,200.

In December, the BTC rate fluctuates within a contracting triangle. The lines of the figure will cross on December 10th. With a high degree of probability, the triangle will be broken down. In this case, Bitcoin will fall in price to at least $ 18,500. If this support barrier is overcome, the asset price will drop to $ 18,000.

btc chart

Flat in the BTC market is due to the high activity of buyers at $ 18,600 and sellers in the $ 19,400 zone. According to many analysts, Bitcoin is at the stage of consolidation, and the rate correction above $ 19,000 is a positive indicator. But an upward movement may occur if BTC breaks above $ 19,400. Otherwise, the price will go down.

Bitcoin Value Collapse Is Inevitable

BTC started pumping in March, so the upward trend has already been delayed. Financier Raul Pal said that the technical indicator DeMarker signals a drop in the price of the coin due to a significant decrease in demand for the cryptocurrency. According to the instrument’s performance, the risk of a decline in asset value persists as long as BTC trades in a range below $ 19,700.

btc chart

On December 2, 10 technical indicators indicated bearish divergence. This fact signals an imminent full-fledged dump, as a result of which the Bitcoin price will drop to at least $ 10,000. The RSI index indicates a strong overbought BTC. A similar situation occurred before the dump at the beginning of 2018, when the coin fell by 70%. Judging by the timeframes, the value of Bitcoin will go down in December.

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 18,500.
  • Major Resistance Level – $ 19,400.
  • The nearest pivot points are $ 18,438 and $ 19,827.
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